Hyderabad: State-owned Rashtriya Ispat Nigam Ltd (RINL) Thursday said it is committed to begin exploration of Bayyaram mines area to find out the exact quantum of iron ore reserves there and set up value addition facilities.
RINL Chairman and Managing Director A P Choudhary said he has requested the Andhra Pradesh government to take forward the mines allocation recommendations to Ministry of Mines for its approval.
"RINL has expressed its intent to set up value addition facilities such as beneficiation plant, pelletisation plant, steel mill, depending on the quantum of iron ore reserves available at Bayyaram (Khammam District) and other proposed mines in Warangal and Karimnagar districts," the statement from the steel maker said.
RINL, despite being one of the major steel producers, is without any captive iron ore and coal mines.
The state government recently issued an order allotting iron ore mines located Khammam, Warangal and Karimnagar districts to RINL. The move evoked strong reaction from Telangana leaders of all political parties who claimed that the resources of the region should be utilised here itself by setting up an integrated steel plant.
RINL has applied for 7 mining leases in Andhra Pradesh starting from 2005 to secure supply of iron ore.
"RINL has also signed an MoU with Government of Andhra Pradesh for an investment of Rs 42,400 crore and the state government had agreed to facilitate allotment of iron ore mines to RINL on priority," the statement further said.
RINL has drawn an ambitious corporate plan to expand to 20 mtpa in phases, by 2025, which would make Visakhapatnam Steel Plant, the largest plant in a single location in the country.
RINL is close to doubling its capacity to 6.3 million tonnes per annum and to 7.3 million tonnes through modernisation and upgradation.